Key Points:
- Investment Sought: £75,000
- Investor: No deal made
- Equity Offered: 15%
- Business: Farino Carrier - innovative top-loading travel and work bag on wheels.
- Target Audience: Professionals with heavy carrying needs, like lawyers and stylists.
- Challenges: High production costs and competitive market positioning.
The Pitch:
In a compelling presentation on "Dragons' Den," entrepreneur Paola showcased her innovative solution to a common problem—carrying heavy loads with ease. She introduced the Farino Carrier, a uniquely designed, top-loading bag equipped with 360-degree rollerblade spinner wheels. Paola's pitch emphasized the product's functionality and its potential to reduce physical strain from carrying heavy bags, a solution born out of her own experiences.
Financials and Offer:
Paola sought an investment of £75,000 in exchange for a 15% share in her business. She explained the cost dynamics behind the Farino Carrier, with each unit costing £63 to produce in China, aiming for a retail price of £234. Despite previous sales success, notably selling 187 units in less than 40 minutes on a shopping channel, her financial records showed a pattern of losses over the last three years, complicating her pitch.
Challenges Highlighted by the Dragons:
The Dragons raised several concerns during the pitch. They questioned the high production cost and retail price, which they felt could limit the product's marketability and competitive edge. The discussion also touched on similar existing products, with some Dragons recalling comparable items from the past, suggesting that the Farino Carrier might not be as innovative as claimed. The high price point, in particular, was seen as a significant barrier to widespread market adoption.
Conclusion
:
Despite the initial interest and acknowledgment of the Farino Carrier's design and practical benefits, all the Dragons decided against investing. They cited concerns over the financial viability of the business, the competitive nature of the market, and the pricing strategy. While Paola did not secure an investment, the feedback provided valuable insights into market expectations and product positioning, offering her critical points to consider as she plans the next steps for her business. The pitch session underscored the importance of aligning product innovation with market demands and cost-effective production strategies.